New scheme for Noida builders, homebuyers in pipeline

Noida, Greater Noida and Yamuna Expressway authorities are mulling a proposal to come up with a new scheme to give relief to homebuyers and builders

Noida, Greater Noida and Yamuna Expressway authorities are mulling a proposal to come up with a new scheme to give relief to thousands of homebuyers and builders as the builders are not able to deliver flats on time citing financial crisis.

The Noida, Greater Noida and Yamuna Expressway authorities will finalise a draft of the comprehensive policy after detailed discussions on legal issues in the next 15 days. (Sunil Ghosh / HT Photo)

Earlier, the three authorities had in May proposed an ‘exit policy’ to make way for builders to return undeveloped land to the government. But the Uttar Pradesh government has not approved of the plan so far, delaying its implementation on the ground.

“Now, we are working out a comprehensive policy and the ‘exit policy’ will be a part of it. The objective of the comprehensive policy will be to revive sick realty projects and also benefit property buyers, who have bought flats and are unable to get possession. But we need to carry out discussions before finalising the policy,” said Sanjay Aggarwal, chairman of the three authorities.

Aggarwal discussed the modalities of the proposed comprehensive policy with top officials of the three authorities in Noida’s Sector 6 office on Monday. Deepak Agarwal, chief executive officer (CEO) of the Greater Noida and Pramod Kumar Aggarwal, CEO, Noida authority, and other senior officials, discussed the policy framework at the meeting.

The three authorities will finalise a draft of the comprehensive policy after detailed discussions on legal issues in the next 15 days.

The comprehensive policy draft was one of the important agenda items for the board meeting of the three authorities, that was scheduled to be held on October 3. As the draft policy could not be finalised, the joint board meeting was also deferred.

The exit policy for builders in Noida and Greater Noida was expected to address the issue of delayed completion of housing projects that has been affecting homebuyers. If approved, the policy would help revive stalled housing projects, thereby benefitting buyers.

The authorities and the Uttar Pradesh government is facing challenges in implementing exit policy because property buyers have invested money in group housing societies or commercial land.

“The builders who have got a certain piece of housing or commercial land, have sold the plots or the homebuyers have booked flats on the land meant for housing projects. But the builders have not started construction on the ground. If the builder returns the land to the government under the proposed exit policy, buyers, who are waiting for flats, plots or commercial space will suffer. Therefore, the authorities need to look into all aspects,” said another official, requesting anonymity.